Fresh off a meeting with senior executives at Apple, Morgan Stanley analyst Katy Huberty said the company sees product cycles as being driven by software rather than hardware and is expected to announce major software updates at the Worldwide Developers Conference in June.

Apple's 10-Q form filing with the U.S. Securities and Exchange Commission has revealed the largest sequential increase in purchase commitments for a March quarter to $11 billion, as iPad 2 production ramps up.

Wall Street was impressed with Apple's record earnings for the second quarter of fiscal 2011 on Wednesday, as one analyst calling the company a "magical growth story" and several firms raised their revenue estimates for future quarters.

According to one analyst's checks with Apple's Asian suppliers, the company is in the process of building a 'Smart TV' prototype as part of an ongoing effort to assert a stronger presence in consumers' living rooms.

Wall Street analysts reacted positively to Apple's unveiling of the iPad 2 on Wednesday and remained optimistic about the company's continued ability to lead the tablet market, though they viewed the refresh as mostly "evolutionary."

The most likely use of Apple's secret $3.9 billion long-term supply investment is for tens of millions of displays for the iPhones and iPads the company plans to sell in the near future, one Wall Street analyst believes.

Morgan Stanley analyst Katy Huberty described China as an "unappreciated" potential growth driver for Apple, setting a $375 "base case" target for the company's stock and a "bull case" scenario where Apple shares could reach $500 by next fall.

Morgan Stanley analyst Katy Huberty said Monday she believes iPhone market share growth, including in the enterprise market, along with strong initial demand for the iPad will push Apple stock to $310, but her "bull case" scenario shows it going even higher, to $400.

Research investment firm Oppenheimer on Friday raised its price target and estimates for Apple through the end of the fiscal year to reflect improving momentum across all the company's product lines and expectations of strong March quarter results.